The consideration for the acquisition includes a cash component of $370m and 34.9 million shares of the Nasdaq-listed Patterson-UTI Energy
Ulterra Drilling Technologies to be acquired by Patterson-UTI Energy. (Credit: Anita starzycka from Pixabay)
Patterson-UTI Energy has agreed to acquire specialised drill bit solutions provider Ulterra Drilling Technologies from affiliates of Blackstone Energy Partners in a cash and stock deal.
The consideration for the acquisition, which will be executed on a debt-free basis, is made up of a cash component of $370m and 34.9 million shares of Patterson-UTI Energy, which is listed on Nasdaq.
Ulterra Drilling Technologies, which is based in Texas, was established in 2005. The privately-owned company is engaged in designing, manufacturing, selling, and renting polycrystalline diamond compact (PDC) drill bits.
It offers support to clients across more than 30 nations. The company’s worldwide support spans across a network of sales, manufacturing, and repair facilities distributed throughout North and South America, the Middle East, and Asia.
In the North American region, Ulterra Drilling Technologies has been providing PDC drill bits, with operations across the busiest basins in the US and Canada.
Ulterra Drilling Technologies president and CEO John Clunan said: “Our data-driven approach to industry-leading drill bit engineering and innovation, along with strong customer relationships, aligns well with Patterson-UTI’s engineering and operational success.
“We are excited about the potential to add our leading drill bit technologies to Patterson-UTI’s portfolio of drilling rigs, directional drilling services, controls automation and well placement technologies to better support our customers’ efforts to drill better wells.”
The deal, is subject to regulatory approvals and other conditions, following which, it is anticipated to close in Q3 2023.
Ulterra Drilling Technologies, after the closing of the deal, will continue to operate under the same name, apart from retaining its headquarters in Fort Worth.
Patterson-UTI Energy, which provides drilling and completions services in the US, announced an all-stock merger deal worth $4.5bn with NexTier Oilfield Solutions. Announced last month, the merger deal is expected to close in Q4 2023 subject to various conditions.
Patterson-UTI CEO Andy Hendricks said: “Ulterra’s industry leading position in the North American PDC drill bit market will expand our operational and technology portfolio and strengthen our position as a leading drilling and completions company.
“The addition of Ulterra to our drilling offering and our recent announcement to merge with NexTier Oilfield Solutions advances our strategy to enhance our positions in both drilling and completions, areas where Patterson-UTI has a strong 45-year history of operations and innovation.”